# RADIUS SECURITIES LLC X-17A-5 (2020-08-31) — Broker-dealer annual report - Company: RADIUS SECURITIES LLC - Form: X-17A-5 - Filed: 2020-08-31 - Period: 2020-06-30 - Accession: 0001673992-20-000003 - CIK: 1692081 - File #: 8-69876 - Material weakness: No - Auditor: YSL & Associates - Auditor location: New York, NY - Contact: Kathy Efrem - Phone: 2128971686 - Signed by: Kathy Efrem (FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/1692081/000167399220000003/rad20s.pdf --- {0}------------------------------------------------ # RADIUS SECURITIES LLC # FINANCIAL STATEMENTS For the year ended June 30, 2020 {1}------------------------------------------------ UNJTED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours oer response .. . 12.00 8-69876 SEC FILE NUMBER # **ANNUAL AUDITED REPORT FORMX-17A-5 PARTill** ### **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | _
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MM/DD/YY | __
AND ENDING | 06/30/2020
MM/DD/YY | |--------------------------------------------------------------------------|---------------------------------------------------------|------------------|-------------------------------------------------| | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-
DEALER: | | | OFFICIAL USE | | RADIUS SECURITIBS LLC | | | ONLY
FIRM ID.NO. | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | 39 Broadway, Suite 3300, Room 1 lF
(No. and Street) | | | | New York | NY | | 10006 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | Kathy Efrem | | | (212~897-1686
Telephone No.)
(Area Co e - | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | YSL & Associates | | | | | | (Name - if individual, state last, first, middle name) | | | | 11 Broadway | New York | NY | 10004
(Zip Code) | | (Address) | (City) | (State) | | | CHECK ONE: | | | | | [!] Certified Public Accountant | | | | | D
Public Accountant | | | | | D
Accountant not resident in United States or any of its possessions. | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2).SEC* 1410 (3-91) {2}------------------------------------------------ ### **AFFIRMATION** I, Kathy Efrem, affirm that, to the best of my knowledge and belief, the accompanying financial statements and supplemental schedules pertaining to Radius Securities LLC for the year ended June 30, 2020, are true and correct. I further affirm that neither the Company nor any officer or director has any proprietary interest in any account classified solely as that of a customer. Title *Qt«d{!aJ\_* **Notary Public** RUSSELL D. COHEN Notary Public, State **of New YOl'k** Qualified in Nassau **COUnty** No. 01C06249S90 Commission Expires October 11, 2023 {3}------------------------------------------------ # **RADIUSSECURITIESLLC TABLE OF CONTENTS** ## **This report\*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Firm. - [ x] Facing Page. - [x] Statement of Financial Condition. - [ x] Statement of Operations. - [x] Statement of Changes in Members' Equity. - [ x] Statement of Cash Flows. - [ ] Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [x] Computation of Net Capital for Brokers and Dealers Pursuant to Rule J 5c3-l under the Securities Exchange Act of 1934. - [x] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule 15c3-l and the Computation for Determination of Reserve Requirements Under Rule 15c3-3 (included in item (g)). - [ ] A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Oath or Affirmation. - [ ] A copy of the SIPC Supplemental Report. - [ ] A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit (Supplemental Report on Internal Control). - [ ] Independent Auditors' Report on Internal Control Required by SEC Rule I 7a-5(g)(l ). - [x] Independent Auditors' Report Regarding Rule l 5c3-3 Exemption. - [x] Rule 15c3-3 Exemption Report - \*\* *For conditions of confidential treatment of certain portions of this filing, see section 240.17 a-5 (e)(3).* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Radius Securities LLC ## **Opinion on the Financial Statements** We have auc!Jted the accompanying statement of financial condition of Radius Securities LLC (the "Company") as of June 30, 2020, the related statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes and schedules ( collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2020, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ## **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. ## **Supplemental Information** The supplemental information contained in Schedule I and Schedule TI has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.l 7a-5. In our opinion, the supplemental information contained in Schedule I and Schedule U is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Radius Securities LLC's auditor since 2018. New York, NY August 28, 2020 {5}------------------------------------------------ # **RADIUS SECURITIES LLC** ## **STATEMENT OF FINANCIAL CONDITION** ## **JUNE 30, 2020** ### **ASSETS** | Cash | \$ | 11,623 | |---------------------------------------|----|--------| | Prepaid assets | | 1,163 | | Total assets | | 12,786 | | LIABILITIES AND MEMBERS' EQUITY | | | | Liabilities : | | | | Due to affiliate | | 300 | | Members' Equity | | 12,486 | | Total liabilities and members' equity | \$ | 12,786 | {6}------------------------------------------------ # **RADIUS SECURITIES LLC STATEMENT OF OPERATIONS** ## **FOR THE YEAR ENDED JUNE 30, 2020** | Expenses: | | |---------------------|---------------| | Administrative fees | \$
1,200 | | Regulatory expenses | 2,456 | | Other expenses | 714 | | Total expenses | 4,370 | | Net loss | \$
(4,370) | {7}------------------------------------------------ # **RADIUS SECURITIES LLC STATEMENT OF CHANGES** IN **MEMBERS' EQUITY** ## **FOR THE YEAR ENDED JUNE 30, 2020** | Net loss
end of year
Balance - | \$
(4,370)
12,486 | |--------------------------------------|-------------------------| | Capital contributions | 7,450 | | beginning of year
Balance - | \$
9,406 | {8}------------------------------------------------ # **RADIUS SECURITIES LLC STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDED JUNE 30, 2020** | Cash flows from operating activities | | |-------------------------------------------------|---------------| | Net k>ss | \$
(4,370) | | Adjustments to reconcile net loss | | | to net cash used in operating activities: | | | Non cash expense | 2,450 | | Changes in assets and liabilities | | | Decrease in prepaid assets | 238 | | Increase in due to affiliate | 100 | | Net cash used in operating activities | (1,582) | | Cash flows from fmancing activities | | | Capital contributions | 5,000 | | Net increase in cash | 3,418 | | Cash -
beginning of year | 8,205 | | end of year
Cash - | \$
11,623 | | | | | Non-cash financing activities: | | | Non-cash contributions from conversion of debts | \$
2,450 | {9}------------------------------------------------ # **RADIUS SECURITIES LLC NOTES TO FINANCIAL STATEMENTS** ## **JUNE 30, 2020** ### NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS Radius Securities LLC (the "Company") is a broker dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA") formed for the purpose of providing broker dealer services including financial advisory services, mergers and acquisition services and to engage in private placement of securities and similar services. The Company has no meaningful operations since it became a member of FINRA in October 2017. ### NOTE2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ## Basis of Presentation These financial statements were prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. ### Revenue Recognition The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, ( c) determine the transaction price, ( d) allocate the transaction price to the performance obligations in the contract, and ( e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Revenue will be recognjzed when earned and collectable when the terms of the agreement are fulfilled. ### Significant Judgements Revenue from contracts with customers includes fees from advisory services, capital introduction placements and retainer fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. {10}------------------------------------------------ # **RADIUS SECURITIES LLC NOTES TO FINANCIAL STATEMENTS** ## **JUNE 30, 2020** ### NOTE2. SUMMARY OF SIGNfFlCANT ACCOUNTING POLICIES *(continued)* ### Income Taxes The Company is a limited liability company, treated as a partnership for federal, state and city income tax purposes; it therefore does not incur income tax.es at the Company level. Instead its earnings and losses are passed through to tbe members and included in the calculation of each member's tax liability. Accordingly, no provision for income taxes has been made in the accompanying financial statements. The Company is subject to New York City Unincorporated Business Tax. ### NOTE3. RELATED PARTY TRANSACTIONS In accordance with a services agreement, the Company's affiliate pays for various specified expenses for which the Company compensates the affiliate in the form of a management fee and for various other expenses, such as sundry professional services, for which the Company does not reimburse the affiliate. During the period covered in this report, the Company has incurred \$1,200 on its books for the management fee. The affiliate agreed to pay approximately \$17,000 in expenses on behalf of the Company without seeking reimbursement. ### NOTE4. NET CAP IT AL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1 This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital both as defined shalJ not exceed 15 to 1 and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At June 30, 2020 the Company's net capital was \$11,323 whi.cb was approximately \$6,323 in excess of its minimum requirement of \$5,000. NOTES. COMPUANCE WITH RULE 15C3-3 > The Company does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule 15c3-3. #### NOTE6. GOING CONCERN Accounting Standards Update 2014-15 requires that management evaluate conditions or events that might raise substantial doubt about the Company's ability to continue as a going concern. Management has evaluated the Company's conditions and has determined that unless the Company generates enough revenue or continues to be funded by its members, there is substantial doubt about the Company's ability to continue as a going concern. Capital is not a significant income producing factor but should the Company have a need for capital it will be able to rely upon its members to infuse capital to cover overhead should that become necessary. {11}------------------------------------------------ # **RADIUS SECURITIES LLC NOTES TO FINANCIAL STATEMENTS** ## **JUNE 30, 2020** #### NOTE?. COVID-19 During the 2020 calendar year, the World Health Organization has declared COVID-19 to constitute a "Public Health Emergency oflnternational Concern". This pandemic has disrupted economic markets and the economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The financial performance of the Company is subject to future developments related to the COVIC-19 outbreak and possible government advisories and restrictions placed on the financial markets and business activities. The impact on financial markets and overall economy, aJl of which are highly uncertain, cannot be predicted. Jfthe financial markets and/or overall economy are impacted for an extended period, the company's results may be materially affected. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. #### NOTE8. NEW ACCOUTlNG PRONOUNCEMENT In June 2016, the F ASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Currently, GAAP requires and "incurred loss" methodology that delays recognition until it is probable a loss has been incurred. Under the new standard, the allowance for credit losses must be deducted from the amortized cost of financial asset to preset the net amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This provision of guidance requires a modified retrospective transition method with a cumulative-affect adjustment in retained earnings upon adoption. This guidance is effective for the company on July l, 2020, and the Company adopted this guidance on that date. The impact of this guidance is not expected to be material to the company. {12}------------------------------------------------ ## SUPPLEMENTARY INFORMATION {13}------------------------------------------------ # **SCHEDULE I** # **RADIUS SECURITIES LLC** # **COMPUTATION FOR DETERMINATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION** # **AS OF JUNE 30, 2020** | Members' equity | \$12,486 | |------------------------------------------------|-----------| | Deductions and/or charges | | | Prepaid assets | 1,163 | | Net Capital | 11,323 | | Less: Minimum net capital requirements | | | Greater of 6 2/3% of aggregate indebtedness | | | or \$5,000 | 5,000 | | Excess net capital | \$ 6,323 | | Aggregate indebtedness: | | | Accounts payable and accrued expenses | 300
\$ | | Ratio of Aggregate Indebtedness to Net Capital | 0.03 | There are no material differences between the computation of net capital presented above and the computation of net capital reported in the Company's unaudited Form X-17 A-5, Part IIA filing as of June 30, 2020. See report of independent registered public accounting firm. {14}------------------------------------------------ # **SCHEDULE** II # **RADIUS SECURITIES LLC** # **INFORMATION REGARDING APPLICABILITY OF RULE 15C3-3** # **FOR THE YEAR ENDED JUNE 30, 2020** The Company does not hold customers' cash or securities. Accordingly, it had no obligations under SEC Rule l 5c3-3 throughout this fiscal year. See report of independent registered public accounting firm. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING** FIRM To the Members of Radius Securities LLC We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report, in which (l) Radius Securities LLC (the "Company") may file an exemption report because it had no obligations under 17 C.F.R.§240.15c3-3 and (2) the Company stated that it had no exceptions under SEC Rule 15c3-3 throughout the most recent fiscal year. The Company's management is responsible for compliance with 17 C.F.R.§240.15c3-3 and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on Rule l 5c3-3 under the Securities Exchange Act of 1934. NewYork, NY August 28, 2020 {16}------------------------------------------------ # **RADIUS SECURITIES LLC** # **RULE 15c3-3 EXEMPTION REPORT FOR THE YEAR ENDED JUNE 30, 2020** Radius Securities LLC does not handle cash or securities on behalf of customers. Therefore it had no obligation under SEC Rule 15c3-3 throughout year ended June 30, 2020 without exception and thus may file an Exemption Report. Executed by Person~ maetheoatb or affirmati Under SEC Rule 17a-5(e)(2) Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.